What reasons would a retail manager have for making prices lower?


1 Answers

Oddman Profile
Oddman answered
Here is an example where reducing the price increases the resulting revenue. It is not all that uncommon for this to be the case.

Of course, a revenue increase does not necessarily mean a profit increase. There are some cases where it does, however, as in the example--where the marginal cost of production is essentially zero (the cost of the paper for one more ticket).

Answer Question